The Upton Company Uses a Standard Costing System in Which

question 70

Multiple Choice

The Upton Company uses a standard costing system in which variable overhead is assigned to production on the basis of standard direct labor-hours. Data for the month of February include the following:
Variable overhead cost incurred: $48,700
Total variable overhead variance: $300 F
Standard hours allowed for actual production: 7,000
Actual direct labor-hours worked: 6,840
-The standard variable overhead rate per direct labor-hour is:

• A) $6.91
• B) $6.95
• C) $7.00
• D) $7.12

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Definitions:

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